Rock Hill, SC asked in Consumer Law for South Carolina

Q: I canceled a home warranty because it was shady. And they will not refund half my money unless I take down my review.

Isn't this extortion?

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1 Lawyer Answer
T. Augustus Claus
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A: In South Carolina, the situation you described raises concerns under consumer protection laws. When a company conditions a refund on the removal of a negative review, it could potentially be considered a form of extortion or a violation of your rights under laws designed to protect free speech and consumer rights. Such practices might also infringe upon the principles of fair business practices as outlined by the Federal Trade Commission (FTC) and similar state regulations, which aim to ensure honest reviews and transparency for consumers. It's important to document all communications with the home warranty company as evidence of their demand. Additionally, reporting this behavior to the Better Business Bureau (BBB), the South Carolina Department of Consumer Affairs, and potentially the FTC could help address the misconduct and prevent similar situations for others.

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